Birlasoft Margins improved on account of revenue growth, lower sub-contracting cost and better pricing, attrition continues to inch upwards

• Q4FY22 In USD: Revenue at $ 146.4 M, up 2.1% QoQ & 18.8% YoY.

• EBITDA at $ 23.2 M, up 6.5% QoQ & 11.5% YoY.
• Margin at 15.8%, up 66 bps QoQ.
• PAT at $ 17.7 M, up 15.9% QoQ
• 30.7% YoY Signed deals of TCV $ 222 M during the quarter.

• Q4FY22 In Rs: Revenue at ₹ 1,101.4 Cr, up 2.8% QoQ and 22% YoY

• EBITDA at ₹ 174.5 Cr, up 7.2% QoQ & 14.5% YoY
• PAT at ₹ 132.9 Cr up 16.6% QoQ and up 34.3% YoY.

• FY22 in US $: Revenue at $ 555.2 M, up 15.8% YoY

• EBITDA at $ 86.0 M, up 20.4% YoY
• EBITDA margin at 15.5% vs 14.9% in FY21
• PAT at $ 62.3 M; up 43.6% YoY

• FY22 in INR: Revenue at ₹ 4,130.4 Cr, up 16.2% YoY

• EBITDA at ₹ 640.1 Cr, up 21% YoY
• Margin expansion of 60 bps YoY
• PAT at ₹ 463.6 Cr, up 44.5% YoY

• EBITDA margins for Q4 at 16.9% improved from 15.2% in previous quarter on account of revenue growth, lower sub-contracting cost and better pricing. Sub-contracting charges were 15.8% of the revenue in Q4 (17.5% in Q3) thus leading to lower SG&A expenses. Expected to be in the range of 11%-12% going forward as supply side challenges cool off.
• Buyback Size accounts for ~25% of the eligible net-worth as on March 31, 2022 on standalone basis. The Company proposes to buyback 7.8 M shares under the Buyback, which amounts to 2.79% of the total shares outstanding as on date.
• Signed deals of TCV $ 696 M during the year.
• TCV new deal wins of $ 444 M and renewals of $ 252 M for FY22
• Active Client Count at 296 in Q4 FY22
• > $ 1 M customers at 80, up by 4 YoY o > $ 5 M customers at 25, up by 3 YoY o > $ 10 M customers at 13, up by 4 YoY
• Revenue for Top 10 & Top 20 clients grew by 18.4% & 20.4% respectively in FY22
• Cash & Cash equivalents of $ 161.6 M versus $ 153.1 M in FY 21; up $ 14 M YoY & $ 11.9 M QoQ
• In ₹ terms, cash and cash equivalents at ₹ 1225 Cr vs ₹ 1118.9 Cr; up ₹ 106 Cr YoY
• Q4 DSO at 58 days versus 56 days in Q4 FY21
• Manpower strength of 12,204 as at 31st March 2022 versus 11,051 a year ago.
• Net addition of 1,153 professionals during the financial year and 259 during the quarter.
• Attrition increased from 31.4% in Q3FY22 to 34.3% in Q4FY22.
• FY23 revenue growth and margins to be better than that of FY22 on account of pyramid optimization, automation, client mining, strong demand and better pricing.
• Company is confident of achieving its target of $1 bn revenue by FY25 of which $800-$850 is expected to be organic.

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